Stewart & Holmes Drug Co. v. Reed

133 P. 577, 74 Wash. 401, 1913 Wash. LEXIS 2068
CourtWashington Supreme Court
DecidedJuly 22, 1913
DocketNo. 11032
StatusPublished
Cited by27 cases

This text of 133 P. 577 (Stewart & Holmes Drug Co. v. Reed) is published on Counsel Stack Legal Research, covering Washington Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Stewart & Holmes Drug Co. v. Reed, 133 P. 577, 74 Wash. 401, 1913 Wash. LEXIS 2068 (Wash. 1913).

Opinion

Ellis, J.

— In this action, the plaintiff, by garnishment, sought to enforce against the garnishee defendant Reed an alleged liability under the sales-in-bulk law. About June 17, 1911, the defendant Ross, who was conducting a small mercantile business at Friday Harbor, San Juan county, purchased from the plaintiff upon a conditional sale contract a soda fountain, at an agreed price of $250. Twenty-five dollars was paid on the purchase price at the time, and $25 was remitted from the purchase price by reason of a subsequent failure of the fountain to give satisfactory service, thus leaving a balance of $200 which Ross never paid. Apparently, at the time of the purchase, Ross also purchased from the plaintiff supplies for the fountain of the value of $28.50. This, also, was unpaid.

On the 18th day of July, 1911, the defendant Ross sold his entire- stock and a part of his fixtures to the garnishee defendant Reed for $510.79, $50 of which was paid on July 20, 1911, $160.79 on July 28, 1911, and $300 on August 28, 1911. The soda fountain was not included in this sale. It is [403]*403admitted that Reed did not obtain from Ross a verified statement of his indebtedness, and the names of his creditors, as required by the sales-in-bulk law, Rem. & Bal. Code, § 5296 et seq. (P. C. 203 § 9). On the 5th day of October, 1911, the plaintiff began an action against the defendant Ross to recover the amount of the unpaid balance of the purchase price of the soda fountain and the account of $28.50 for supplies therefor. A writ of attachment was sued out, and the return of the sheriff on the summons, complaint, and writ of attachment shows that Ross could not be found. The plaintiff filed an affidavit for garnishment, alleging that the garnishee defendant was indebted to Ross and had in his possession and under his control personal property belonging to Ross. A writ of garnishment was issued against Reed, who answered denying any indebtedness to Ross and alleging that he had no property in his possession belonging to Ross. The plaintiff by affidavit controverted this answer. The defendant Ross was served with summons by publication. He failed to answer and an order of default was taken against him. Thereafter, on January 8, 1913, the issues presented in the garnishment proceeding were tried, and the court adjudged that the garnishee defendant, at the time of the service of the writ of garnishment, was not indebted to the defendant Ross in any sum, and then had in his possession no property belonging to Ross, and discharged the garnishee defendant, awarding him costs and disbursements, together with an attorney’s fee of $25. The plaintiff has appealed.

Both sides concur in the assertion: “The only question involved is whether or not the court erred in finding that appellant elected to and did rescind the conditional sale contract and retake the property prior to the commencement of the action against the defendant Ross.” On this issue the respondent holds the affirmative, the appellant the negative. The evidence in support of the affirmative view may be condensed as follows: ' Shortly after making the purchase of the stock, the respondent wrote two letters to the appel[404]*404lant, the last apparently written on August 9, 1911. These letters are not in evidence, but the appellant’s answer seems to indicate that they advised the appellant of the sale and that the respondent had not purchased the soda fountain. The appellant’s answer was as follows:

“J. W. Reed, Seattle, Wash., Aug. 10, 1911.
“Friday Harbor, Wash.
“Dear Sir: We are in receipt of yours of the 9th inst. and note contents. The fountain was sold to Mr. Ross and will have to be paid for by him. We do not know you in the transaction, and therefore have no desire to continue a lengthy correspondence. If Mr. Ross is good for the fountain, he will have to pay for it.
“Our Mr. Mayrand will probably be in Friday Harbor within a very short time and we will ask him to go into the matter more fully and take whatever action is necessary.
“Very truly yours, Stewart & Holmes Drug Co.”

The respondent testified that thereafter, and in the month of August, the exact date did not appear, the man Mayrand, referred to in this Tetter, or Marens as he is called in the testimony, did go to Friday harbor and attempted to sell the soda fountain to the respondent. Twice subsequently— the dates do not appear — he visited Friday Harbor and each time tried to sell the fountain to the respondent. This is not contradicted. Marens was not called as a witness. One Woods, another representative of the appellant, testified that, in September, 1911, he went to Friday Harbor and that at that time the respondent had removed the fountain to a back room; and, although he testified that the respondent was using the fountain, the respondent denied this, and Woods’ testimony shows that the only use was of the marble counter, and that there was no use being made of the fountain as such. Though Woods was, at that time, told that Ross had gone to California, there is no evidence that he then made any claim that the respondent would be held for the purchase price of the fountain. The evidence also shows that, at some time, the appellant, through its representative, Mairens, [405]*405made arrangements with one Little to have the fountain boxed up and returned to the appellant at Seattle. Little testified that he was spoken to several times with reference to this matter, the last time being about three months before the trial. We think this evidence justified the finding that the appellant elected to retake the fountain.

The law is well settled that where, as in this state, the title retained by the seller on a conditional sale is an absolute title, on breach of the conditional sale contract by the buyer, the seller has a choice of remedies. He may either disaffirm the contract and retake the chattel, or he may treat the transaction as an absolute sale and sue on the contract for the purchase price. But since these remedies are inconsistent, he cannot do both. The assertion of the one is an abandonment of the other. Winton Motor Carriage Co. v. Broadway Automobile Co., 65 Wash. 650, 118 Pac. 817, 37 L. R. A. (N. S.) 71; Ramey v. Smith, 56 Wash. 604, 106 Pac. 160; Keystone Mfg. Co. v. Cassellius, 74 Minn. 115, 76 N. W. 1028; Cooper v. Payne, 111 App. Div. 785, 97 N. Y. Supp. 863; White v. Gray’s Sons, 96 App. Div. 154, 89 N. Y. Supp. 481.

Such an election once made is final and irrevocable.

“Upon the breach of a conditional bill of sale, the vendor may either disaffirm the sale and retake the chattel, or ratify the sale and sue upon the contract. These remedies are inconsistent, and where an election is made it is final, and cannot be reconsidered.” Pels & Co. v. Oltarsh Iron Works, 129 N. Y. Supp. 371, 372.

See, also, Laclede Power Co. v. Assigned Estate of Ennis Stationery Co., 79 Mo. App. 302.

Such an election may be invoked by a third person as a defense to the attempted assertion of the alternative remedy against him. Frisch v. Wells, 200 Mass. 429, 86 N. E. 775, 23 L. R. A. (N. S.) 144. The appellant seemingly concedes that this is the law, but relies upon the rule as to election of remedy generally, as stated in 15 Cyc. 260:

[406]

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Bluebook (online)
133 P. 577, 74 Wash. 401, 1913 Wash. LEXIS 2068, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stewart-holmes-drug-co-v-reed-wash-1913.